,i #aafth ,,congress #ast ,session ,h4 ,r4 #cfic ,,in ,,the ,,house ,,of ,,representatives ,july #aj1 #bjai,mrs4 ,watson ,coleman 7for herself1 ,ms4 ,tlaib1 ,ms4 ,bass1 ,mr4 ,butterfield1 ,mr4 ,bishop of ,georgia1 ,ms4 ,fudge1 ,ms4 ,johnson of ,texas1 ,ms4 ,pressley1 ,ms4 ,norton1 ,ms4 ,omar1 ,mr4 ,thompson of ,mississippi1 ,ms4 ,kelly of ,illinois1 and ,ms4 ,ocasio-,cortez7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to prohibit private passenger automobile insurers from using certain income proxies to determine insurance rates and eligibility4 #a4 ,short title ,this ,act may be cited as the ,prohibit ,auto ,insurance ,discrimination ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,private passenger automobile insurance companies are institutions which help spread risk of loss over a collective group of policyholders4 7#b7 ,private passenger automobile insurance is mandated in all ,states but ,new ,hampshire4 ,legal penalties for operating a vehicle without liability insurance in these ,states range from fines1 to license suspensions or revocations1 to imprisonment4 7#c7 ,the private passenger automobile insurance industry uses different variables to predict the overall costs and risks of drivers4 ,the analysis and use of these variables ultimately help the automobile insurer set premium rates charged to consumers which the automobile insurer determines to be actuarially supported4 7#d7 ,a pure loss ratio1 a measurement of profitability in insurance1 is defined as losses divided by premiums4 ,statistical correlations between certain variables and pure loss ratios should be interpreted to mean that the selected variable relates to profitability1 but not necessarily to the risk that an individual will get into an automobile accident4 7#e7 ,a growing trend in the private passenger automobile insurance industry is to use income proxies for underwriting and rating4 ,the use of income proxies such as a driver's education level1 occupation1 employment status1 home ownership status1 credit score1 consumer report1 previous insurer1 and prior purchase of insurance by the industry as variables that significantly influence the insurance premiums charged to drivers has become commonplace4 ,use of these income proxies in this fashion results in higher rates being charged to lower income drivers while lower rates are being charged to the more affluent driver4 7#f7 ,the ,american public is largely unaware that a person's education level1 occupation1 employment status1 home ownership status1 credit score1 consumer report1 zip code1 census tract1 previous insurer1 and prior purchase of insurance may be significant factors used to determine eligibility for preferred auto insurance rates regardless of the person's driving history4 ,as a result of the individual's ineligibility for preferred rates1 the driver's policy and rate will be only offered from an affiliate company that has higher rates4 #c4 ,requirements for private passenger automobile insurers 7a7 ,use of certain factors and income proxies prohibited ,it shall be unlawful for a private passenger automobile insurer1 or any of its affiliate insurers1 to take into consideration any of the factors described in subsection 7b7 relating to a consumer in determining that consumer's eligibility for automobile insurance or in calculating the rate for that consumer4 7b7 ,factors ,the factors referred to in subsection 7a7 are-- 7#a7 gender2 7#b7 level of education2 7#c7 occupation2 7#d7 employment status2 7#e7 home ownership status2 7#f7 zip code or adjacent zip codes2 7#g7 census tract2 7#h7 marital status2 7#i7 credit score or credit-based insurance score2 7#aj7 consumer report2 7#aa7 previous insurer2 or 7#ab7 prior purchase of insurance of a consumer from that automobile insurer4 7c7 ,public availability of information ,all underwriting rules and rate filings for use by any private passenger automobile insurer shall be available for public inspection and may not be considered proprietary trade secret information4 7d7 ,reasonable procedures ,to assure compliance ,no person shall be held liable for any violation of this ,act if the person shows by a preponderance of the evidence that at the time of the alleged violation the person maintained reasonable procedures to assure compliance with the provisions of this ,act4 7e7 ,rules of construction 7#a7 ,factors and methods influencing premiums ,for the purposes of this ,act1 a violation of subsection 7a7 shall be considered to have occurred whenever the consideration of any of the factors described in subsection 7b7 prevents the consumer from obtaining insurance at the lowest rate available to the consumer from a private passenger automobile insurer or any of its affiliates4 ,actions considered a violation of such subsection include the usage or consideration of any such factor resulting in-- 7,a7 the determination of a consumer's eligibility for automobile insurance or the calculation of the rate for that consumer2 7,b7 an action which prevents a consumer from receiving certain rebates or discounts2 7,c7 an action which prevents a consumer from obtaining insurance from an automobile insurer or any of its affiliate companies2 7,d7 a denial1 cancellation1 non-renewal1 or change in policy or coverage terms2 or 7,e7 any other impact on a consumer's premium for insurance4 7#b7 ,authority of ,federal and ,state agencies ,nothing in this ,act is intended to affect the authority of any ,federal or ,state agency to enforce a prohibition against unfair or deceptive acts or practices1 including the making of false or misleading statements in connection with a credit or insurance transaction that is not initiated by the consumer4 #d4 ,enforcement 7a7 ,enforcement by ,federal ,trade ,commission 7#a7 ,unfair or deceptive acts or practices ,a violation of this ,act shall be treated as an unfair and deceptive act or practice proscribed under section #e of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7#b7 ,powers of ,commission ,the ,federal ,trade ,commission shall enforce this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this ,act4 ,any person who violates this ,act shall be subject to the penalties and entitled to the privileges and immunities provided in the ,federal ,trade ,commission ,act4 7#c7 ,amount of penalty ,notwithstanding the penalties set forth in section #e of such ,act1 a person who violates this ,act shall be liable for a civil penalty of not less than #b1ejj per violation4 7#d7 ,regulations ,the ,federal ,trade ,commission shall prescribe1 in accordance with section #eec of title #e1 ,united ,states ,code1 such regulations as are necessary to carry out the purposes of this ,act1 including regulations as may be necessary or appropriate to administer and carry out the purposes and objectives of this ,act1 and to prevent evasions thereof or to facilitate compliance therewith4 7b7 ,actions by consumers 7#a7 ,willful violations ,any private passenger automobile insurer who willfully violates this ,act with respect to any consumer is liable to that consumer in an amount equal to the sum of-- 7,a7 any actual damages sustained by the consumer as a result of the failure2 7,b7 such amount of punitive damages as the court may allow2 and 7,c7 in the case of any successful action to enforce any liability under this paragraph1 the costs of the action together with reasonable attorneys' fees as determined by the court4 7#b7 ,negligent violations ,any private passenger automobile insurer who is negligent in failing to comply with any requirement imposed under this ,act with respect to any consumer is liable to that consumer in an amount equal to the sum of-- 7,a7 any actual damages sustained by the consumer as a result of the failure2 and 7,b7 in the case of any successful action to enforce any liability under this paragraph1 the costs of the action together with reasonable attorneys' fees as determined by the court4 7#c7 ,attorneys' fees ,upon a finding by the court that an unsuccessful pleading1 motion1 or other paper filed in connection with an action under this subsection was filed in bad faith or for purposes of harassment1 the court shall award to the prevailing party attorney's fees reasonable in relation to the work expended in responding to the pleading1 motion1 or other paper4 7#d7 ,jurisdiction of courts2 limitation of actions ,an action to enforce any liability created under this subsection may be brought in any appropriate ,united ,states district court1 without regard to the amount in controversy1 or in any other court of competent jurisdiction1 not later than the earlier of-- 7,a7 #b years after the date of discovery by the plaintiff of the violation that is the basis for such liability2 or 7,b7 #e years after the date on which the violation that is the basis for such liability occurs4 7c7 ,actions by ,states 7#a7 ,in general ,in any case in which the attorney general of a ,state1 or an official or agency of a ,state1 has reason to believe that an interest of the residents of such ,state has been or is threatened or adversely affected by an act or practice in violation of this ,act1 the ,state1 as parens patriae1 may bring a civil action on behalf of the residents of the ,state in an appropriate ,state court or an appropriate district court of the ,united ,states to-- 7,a7 enjoin such act or practice2 7,b7 enforce compliance with this ,act2 7,c7 obtain damages1 restitution1 or other compensation on behalf of residents of the ,state2 or 7,d7 obtain such other legal and equitable relief as the court may consider to be appropriate4 7#b7 ,notice ,before filing an action under this subsection1 the attorney general1 official1 or agency of the ,state involved shall provide to the ,federal ,trade ,commission a written notice of such action and a copy of the complaint for such action4 ,if the attorney general1 official1 or agency determines that it is not feasible to provide the notice described in this paragraph before the filing of the action1 the attorney general1 official1 or agency shall provide written notice of the action and a copy of the complaint to the ,federal ,trade ,commission immediately upon the filing of the action4 7#c7 ,authority of ,federal ,trade ,commission ,on receiving notice under paragraph 7#b7 of an action under this subsection1 the ,federal ,trade ,commission shall have the right-- 7,a7 to intervene in the action2 7,b7 upon so intervening1 to be heard on all matters arising therein2 and 7,c7 to file petitions for appeal4 7#d7 ,rule of construction ,for purposes of bringing a civil action under this subsection1 nothing in this ,act shall be construed to prevent an attorney general1 official1 or agency of a ,state from exercising the powers conferred on the attorney general1 official1 or agency by the laws of such ,state to conduct investigations1 administer oaths and affirmations1 or compel the attendance of witnesses or the production of documentary and other evidence4 #e4 ,relation to ,state law ,this ,act does not annul1 alter1 affect1 or exempt any person subject to the provisions of this ,act from complying with the laws of any ,state with respect to the collection1 distribution1 or use of any information on consumers1 the prevention or mitigation of identity theft1 or the regulation of the business of insurance1 except to the extent that those laws are inconsistent with any provision of this ,act1 and then only to the extent of the inconsistency4 #f4 ,definitions ,for the purposes of this ,act1 the following definitions apply3 7#a7 ,affiliate ,the term affiliate means an entity that1 directly or indirectly1 through one or more intermediaries1 controls1 is controlled by1 or is under common control with another entity4 ,for purposes of this paragraph1 the term control means the possession1 directly or indirectly1 of the power to direct or cause the direction of the management and policies of the entity1 whether-- 7,a7 through the ownership of voting securities2 7,b7 by contract other than a commercial contract for goods or non-management services2 7,c7 by contract for goods or non-management services where the volume of activity results in a reliance relationship2 or 7,d7 by common management4 ,control shall be presumed to exist if an entity and its affiliates directly or indirectly own1 control1 hold with the power to vote1 or hold proxies representing #aj percent or more of the voting interests of an entity4 7#b7 ,automobile insurer ,the term automobile insurer means an insurer authorized to transact or transacting automobile insurance1 motor vehicle insurance1 automobile or motor vehicle liability insurance1 or any similar insurance business in the ,united ,states4 7#c7 ,census tract ,the term census tract means any small1 relatively permanent statistical subdivision of a county1 as used by the ,united ,states ,census ,bureau4 7#d7 ,consumer report ,the term consumer report has the meaning given such term in section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a71 except that such term does not include any communication to the extent such communication relates to the driving history or place of residence of a consumer4 7#e7 ,credit-based insurance score ,the term credit-based insurance score means a rating based in whole or in part on a consumer's credit information used in underwriting and rating of consumers that takes into account certain elements of an individual's credit history to predict how likely such individual is to have an insurance loss4 7#f7 ,credit score ,the term credit score has the meaning given such term in section #fji7;f77#b7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7f77#b774 7#g7 ,employment status ,the term employment status means a consumer's status as a current full-time employee1 part-time employee1 employed1 unemployed1 underemployed1 or any other such designation which indicates a consumer's work status4 7#h7 ,home ownership status ,the term home ownership status refers to whether a consumer currently owns any real property which may be used as a residence4 7#i7 ,level of education ,the term level of education refers to the highest grade level completed in a secondary school or trade school1 a professional licensure or certification1 or the highest undergraduate or graduate college degree obtained4 ,such term does not include the completion of a traffic safety course or scholastic achievement while enrolled in a school1 college1 or university4 7#aj7 ,occupation ,the term occupation means a consumer's current lawful employment position in a career or identifiable trade category4 7#aa7 ,private passenger automobile ,the term private passenger automobile means a #d-wheel motor vehicle1 whether owned or leased to an individual or individuals1 and that is of a private passenger or station wagon type1 or that is a motor vehicle with a pickup body1 a delivery sedan1 a passenger van1 a sports utility vehicle1 or a panel truck or a camper type vehicle1 and that-- 7,a7 is not used as a public or livery conveyance for passengers2 7,b7 is not rented to others2 7,c7 has a gross vehicle weight of less than #ae1jjj pounds2 and 7,d7 is not primarily used in the course of an occupation1 profession1 or business of a person other than farming or ranching4 ,such term includes a motor vehicle owned by a farm family co-partnership or farm family corporation1 which is principally garaged on a farm or ranch and otherwise meets the definition contained in this paragraph4 #g4 ,effective date ,this ,act shall take effect #a year after the date of enactment of this ,act4